12 Mistakes Entrepreneurs Make

6- You surround yourself with "Yes Men"

A strong leader will build his team with people with complementary skills — not brown-nosers who are always giving compliments. You need mentors, partners and employees you trust, who will give you honest feedback. An entrepreneur can become temporarily blinded to potential problems. Be sure that your family, friends and partners feel comfortable enough to tell you about mistakes you might be making.

7- You take on questionable partners

Make sure your business dealings are legal. A shady accountant will disappear when the IRS comes knocking. A silent partner offering to cover your travel expenses for a business trip or holiday abroad might be expecting you to carry over something other than business documents.

Even having your best buddy as your business partner could backfire if your personalities and work ethics don't match. Discuss duties, responsibilities and expectations in advance to avoid problems later on.

8- You stop networking

You've landed a lucrative contract and you're making money. It's easy to become so involved in fulfilling a commitment that you forget to plan ahead. Work on your branding and find ways to increase your reputation and client base. Successful real estate brokers send calendars, newsletters and advertising flyers to build on their name-recognition.

Look for opportunities to network at sporting events, business functions and parties. Remind your friends and former associates of the products and services you offer, and keep your website and promotional materials up to date.

9- You have unreasonable expectations

When you create an innovative new concept, patents, copyrights and trademark registration cannot fully protect you from copycats and knock-offs. Others will see your success and try to emulate it. Be prepared for competition and include that in your initial business plan and in your five-year growth projections.

It would be great to maintain the same level of growth year after year but be realistic. Focusing on what will set your company apart from the newcomers will reap long-term rewards for your brand.

10- Your expenses are exaggerated

Part of your dream might be a corner office, a pool table and the most expensive desk chairs money can buy, but give it some time. Spending your entire advertising budget in the first month is unwise. Playing the big shot and blowing your quarterly entertainment budget in one evening is just plain foolish.

Remember that the optics can adversely influence people's perceptions of you. Clients might think your prices are too high if you flaunt your money.

11- You lose perspective

At the start, all entrepreneurs immerse themselves in the day-to-day operation. Remember to build in some down time and go out for a beer with friends, a weekend camping trip or dinner at your favorite restaurant. After a little bit of networking shop-talk, change the subject to sports, women and your mutual interests. You need balance in your life to be a success in business.

12- You don't have a Plan B

No one wants to think about negatives, but as an entrepreneur, you must expect the unexpected. From product recalls and liability lawsuits on service issues to labor disputes and insurance and stock market problems, you need to be prepared for worst-case scenarios. Being aware of potential pitfalls means you can spot problems before your fledgling company starts circling the drain.

keep your eyes open

The rewards of being a self-employed entrepreneur can be terrific. Be honest with yourself and listen to your employees, clients and trusted advisors. Take the time to prepare, review and improve all aspects of your business, and you'll avoid costly career mistakes.

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